Great Basin drills rev at Burnstone

Hunter-Dickinson-led Great Basin Gold (GBG-T) has tabled the results of a 25-hole, 19,000 metre drill program focused on Area 2 of the 400-sq.-km Burnstone property, 100 km southeast of Johannesburg, South Africa.

Selected intercepts include the following: 42 cm running 6.2 grams gold per tonne in hole 45; 35 cm grading 8.7 grams gold in hole 46; 54 cm averaging 9.9 grams gold in hole 50; 86 cm grading 4.2 grams gold in hole 51; 1.2 metres of 3 grams gold in hole 56; and 54 cm of 7.4 grams gold in hole 67.

The remaining holes returned grades varying from 0.2-7 grams gold over similar widths; twelve of the holes contain visible gold. Great Basin has launched a second phase of 7,000 metres worth of drilling on Area 2 in anticipation of a new resource estimate, which will be incorporated into the mine plan at Burnstone.

At last count, inferred resources at Area 2 were pegged at 24.3 million tonnes running 14.7 grams gold. The estimate was based on only nine drill holes.

Meanwhile, some 3 km to the northwest, Great Basin has begun engineering studies, including cost estimates, for the development of the Area 1 deposit. A 6,000-metre drilling program is planned. The company plans to begin a feasibility study later this year.

Earlier this summer, Great Basin boosted measured resources at Area 1 to 4.7 million tonnes grading 18.5 grams gold. Indicated resources total 2.8 million tonnes of 20.8 grams, or 1.9 million contained ounces. Both figures are based on 57 core holes and a cutoff grade of 350 gram-cm per tonne (T.N.M., June 30-July 6/03).

A 2002 scoping study envisages an underground operation capable of producing 2,500 tonnes per day, from which would be extracted 130,000 oz. gold annually over 24 years. Initial capital costs are pegged at US$50.6 million; cash costs, at US$175 per oz.

Also planned is a 5,000-metre drill campaign on Area 3, about 4 km southeast of Area 2. The area has already yielded some of the best intersections on the property so far, including two historic holes that returned 27 grams gold over 61 cm and 36 grams across 27.5 cm.

More recently, drilling by Great Basin encountered 82 grams over 16 cm. Complete results are pending from three recently completed holes totalling some 2,100 metres. In all, Area 3 will tested by 5,000 metres of drilling.

Great Basin believes that Areas 1,2 and 3 represent a portion of a large, northwest-southeast trending channel system cutting across the Burnstone property for at least 15 km.

Aditionally, a fourth target, dubbed Area 4, has been identified about 2 km south of the Area 1. There, the target is believed to be a series of stacked conglomerates. Gold at Burnstone is hosted by the Kimberley reef, a 30-to-100-cm-wide conglomerate (averaging 40 cm at Burnstone). Limited historic drilling returned between 314-1,480 cm-gram values. Drilling is planned.

Great Basin can acquire up to 100% of South African-based Southgold Exploration, which in turn has the right to acquire 100% of the Burnstone property.